Boundary Disputes: How Overlooking Property Lines Can Lead to Legal Nightmares
What Property Buyers Need to Know About the Contract for Sale #9: How do I verify the property’s boundaries?
Introduction
Verifying a property's boundaries is an essential step when purchasing or developing land. Unclear or disputed boundaries can lead to costly legal disputes, conflicts with neighbors, and unexpected expenses. In New South Wales (NSW), accurately determining property boundaries ensures clarity about what you are buying and protects your investment. This article provides a comprehensive guide on verifying property boundaries, including the use of surveys, legal tools, and official records. A real-life case study from NSW will also demonstrate the significant financial and emotional consequences of failing to verify property boundaries properly.
Steps to Verify Property Boundaries
- Obtain the Land Title and Survey Plan
The first step is to obtain the property's land title and survey plan from the NSW Land Registry Services. The land title contains the legal description of the property, while the survey plan shows the exact dimensions and boundaries. Reviewing these documents thoroughly helps to understand the property's extent. - Hire a Licensed Surveyor
Engaging a licensed surveyor is crucial for accurately determining property boundaries. A surveyor conducts a boundary survey, physically measuring the land and comparing the findings with the survey plan and title documents. This process helps to ensure that the boundaries are correctly marked and that there are no encroachments or discrepancies. - Review Boundary Markers and Fences
Inspect the physical boundary markers or fences on the property. Boundary markers, such as survey pegs or corner posts, are installed by surveyors to indicate property lines. Confirm that these markers match the survey plan's positions. If fences are present, check that they align with the boundary markers and do not encroach onto neighboring properties. - Check for Easements and Encroachments
Easements grant others legal rights to use a portion of your property for specific purposes, such as utilities or access. Encroachments occur when a structure or object from an adjacent property crosses onto your land. Review the land title and survey plan for any easements or encroachments, and consult a legal professional if any may affect your property rights. - Use a Title Search Service
Conducting a title search can reveal any existing boundary disputes, easements, covenants, or other encumbrances affecting the property. Title search services are available through the NSW Land Registry Services, helping ensure there are no surprises about the property's boundaries. - Consult with a Property Lawyer
A property lawyer can provide legal advice on boundary issues and help navigate complex situations, such as disputes or encroachments. They can assist in interpreting survey plans, easements, and covenants to ensure you fully understand the property's boundaries and any associated rights or restrictions. - Address Any Discrepancies Immediately
If you find any discrepancies in the property's boundaries, it is crucial to address them immediately. Engage with a surveyor and legal professional to resolve the issue and negotiate with neighbors or other parties involved. Delaying action can lead to more significant problems and potential legal disputes.
The following case study is a creative attempt by CM Lawyers to illustrate and educate the issues which may arise in a real court case. The case, characters, events, and scenarios depicted herein do not represent any real individuals, organizations, or legal proceedings.
Case Study: Boundary Dispute in New South Wales
Introduction
In the case of Thompson v. Richards [2021] NSWSC 1045, Mr. Thompson purchased a property in a suburban area of Sydney, believing the boundaries were clearly marked by existing fences. However, a boundary dispute with his neighbor, Mr. Richards, soon escalated into a costly legal battle, demonstrating the importance of thorough boundary verification.
Behavior of the Participants
Mr. Thompson initially believed that the property's boundaries were defined accurately by the fences that had stood for over two decades. After purchasing the property, he started renovations, only to be approached by his neighbor, Mr. Richards, who claimed that the fence encroached on his land. Mr. Thompson attempted to resolve the issue amicably but quickly grew frustrated when Mr. Richards insisted on conducting a survey at Thompson’s expense.
The situation grew more desperate when Mr. Thompson realized that his planned renovations, including an extension to his home and a new swimming pool, were now in jeopardy. The mounting stress from the dispute affected his daily life, causing sleepless nights and financial strain. Feeling isolated and overwhelmed, Mr. Thompson decided to take legal action to protect his investment.
Legal Process and Court Involvement
Mr. Thompson filed a lawsuit in the NSW Supreme Court seeking a declaration that the boundary as marked by the existing fence was correct. The court required both parties to submit expert reports from licensed surveyors. The surveyor’s report commissioned by Mr. Thompson found that the existing fence did not align with the boundary described in the land title, confirming an encroachment onto Mr. Richards' property.
The court proceedings involved multiple hearings, and both parties presented extensive evidence, including historical records, photographs, and witness testimonies. After a prolonged legal battle lasting 18 months, the court ruled that the existing fence did encroach on Mr. Richards' property. Mr. Thompson was ordered to remove the encroaching structures and pay compensation to Mr. Richards for the unauthorized use of his land.
Financial Consequences
The financial impact of the boundary dispute was substantial for Mr. Thompson. Legal fees and court costs amounted to $100,000, and he was required to pay an additional $50,000 in compensation to Mr. Richards. The removal and relocation of the fence, along with modifications to his renovation plans, cost another $75,000. Major assets, such as the newly built swimming pool and part of his home extension, were affected, requiring further costly alterations. In total, Mr. Thompson incurred expenses exceeding $225,000 due to his failure to verify the property boundaries before purchase.
Lessons Learned
- Always Verify Boundaries Before Purchase: Never assume that existing physical markers, such as fences, accurately represent property boundaries. Always hire a licensed surveyor to verify boundaries before purchasing or renovating a property.
- Seek Legal Advice Early: Consult a property lawyer at the first sign of a boundary dispute. Early intervention can help resolve disputes quickly and avoid costly litigation.
- Be Prepared for Potential Costs: Boundary disputes can be expensive, with costs including legal fees, compensation, and modifications to structures. Having a financial buffer is advisable.
Statistics on Property Boundary Disputes
- Approximately 15% of property disputes in NSW involve boundary issues.
- 20% of property owners in NSW report discovering boundary discrepancies after purchasing.
- Around 25% of surveyed property owners have experienced a dispute with neighbors over boundary lines.
- Boundary disputes account for 30% of all land disputes in NSW courts.
- 40% of boundary disputes result in changes to property structures, such as fences or buildings.
- The average legal cost of resolving a boundary dispute in NSW is $50,000.
- About 35% of boundary disputes in NSW are resolved through mediation or alternative dispute resolution methods.
- 50% of surveyed property lawyers recommend verifying boundaries with a licensed surveyor before purchase.
- Over 60% of property buyers in NSW fail to conduct a professional survey before purchasing land.
- Boundary disputes can take up to 24 months to resolve in NSW courts.
Essential Resources
Government Resources
- NSW Land Registry Services – Property Boundaries
URL: https://www.nswlrs.com.au
Description: Provides information on land titles, survey plans, and boundary verification in NSW. - NSW Fair Trading – Property Disputes
URL: https://www.fairtrading.nsw.gov.au
Description: Offers guidance on resolving property disputes, including boundary issues. - NSW Department of Planning, Industry and Environment
URL: https://www.planning.nsw.gov.au
Description: Information on land use, property development, and boundary regulations. - NSW Civil and Administrative Tribunal (NCAT) – Land Disputes
URL: https://www.ncat.nsw.gov.au
Description: Resources for resolving land disputes, including boundary disputes, through the tribunal process. - Geographical Names Board of NSW
URL: https://www.gnb.nsw.gov.au
Description: Provides data and maps related to property boundaries and land ownership in NSW.
Non-Profit Organizations
Australian Property Institute
URL: https://www.api.org.au
Description: Provides resources and guidelines for property valuations, including boundary considerations.
Justice Connect – Property Law Assistance
URL: https://justiceconnect.org.au
Description: Offers legal advice and resources for property disputes, including boundary issues.
Tenants' Union of NSW – Land Disputes
URL: https://www.tenants.org.au
Description: Provides information and support for tenants and property owners dealing with land disputes.
Community Legal Centres NSW
URL: https://www.clcnsw.org.au
Description: Offers free legal advice on property-related disputes, including boundary issues.
Property Rights Australia
URL: https://www.propertyrightsaustralia.org.au
Description: Advocacy for property rights, including boundary verification and dispute resolution.
